Hi, I am a partner in a small technology company. Recently we recieved our global patents in a technology that is perfect for the beverage industry. We do have a licensing attorney handling our most recent negotiation. My question is "What is standard % royalties in the coffee industry or beverage industry? The company wants to give us 1.5% 5 yr royalties and money upfront. We highly disagree and feel 10 - 15 yrs or the life time of the product. They want exclusivity for just a narrow select portion of our technology. So far my research reveals 3% 15yrs as typical? with other set min... This would be a global release. Any assistance would be appreciated...

Thanks:confused::confused:

Mr Zabe

03-19-2009, 04:49 PM

Hi, I am a partner in a small technology company. Recently we recieved our global patents in a technology that is perfect for the beverage industry. We do have a licensing attorney handling our most recent negotiation. My question is "What is standard % royalties in the coffee industry or beverage industry? The company wants to give us 1.5% 5 yr royalties and money upfront. We highly disagree and feel 10 - 15 yrs or the life time of the product. They want exclusivity for just a narrow select portion of our technology. So far my research reveals 3% 15yrs as typical? with other set min... This would be a global release. Any assistance would be appreciated...

Thanks:confused::confused: Question. Who is taking the biggest risk in this deal?
IMO....take the deal but try to negotiate more up front money.

NRGSLLR55

03-23-2009, 02:27 PM

It depends on the investment on both sides and the strength of the patent or trademark. I would say 8% is expected by nationally recognized brands. And they are typically an agreement that does not end as long as the trademark or patent is being used.